Corrs Chambers Westgarth has advised Macarthur Coal Limited on the $640 million sell-down of the Codrilla coal project to the participants in the Coppabella and Moorvale Joint Venture.
BB Interests Pty Ltd (a subsidiary of Macarthur Coal) and CITIC Bowen Basin Pty Ltd (a subsidiary of CITIC Resources Holdings Limited) have agreed to sell their respective 85 per cent and 15 per cent interests in the undeveloped Codrilla project to the owners of the existing Coppabella and Moorvale coal mines, being subsidiaries of Macarthur Coal and CITIC and Japanese companies Sojitz, Marubeni, JFE Shoji and Nippon Steel.
The deal is subject to a number of conditions.
When announcing the sell-down, Macarthur Coal also announced the selection of the Codrilla coal project as Macarthur Coal's fourth mine. Macarthur Coal has stated that the sell-down of the Codrilla coal project to the participants in the Coppabella and Moorvale Joint Venture will expedite the development of the new Codrilla coal mine, enhance coal blending and marketing opportunities, and expand the already successful long-term relationship with Macarthur Coal's strategic partners.
"This is an important milestone for Macarthur, furthering our reputation for developing green field exploration tenements into productive and profitable mines," said Macarthur Coal CEO Nicole Hollows. The Corrs team was led by energy and resources partner Bruce Adkins.
Baker & McKenzie (partner Ashley Poke) acted for CITIC, Dibbs Barker for the Japanese buyers, and McCullough Robertson (partner Janelle Moody) also assisted Macarthur Coal.